IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 08
| Q1.When taxable income is more than accounting income it gives rise to |
| a) Deferred tax asset |
| b) Deferred tax liability |
| c) Current tax |
| d) Extraordinary income |
| Q2.What refers to an accounting practice which places a present-day value on claim outstanding provision? |
| a) Premium |
| b) Discounting |
| c) Depreciation |
| d) Maturity amount |
| Q3.The form and contents of the Balance Sheet and Statement of Profit and loss are for companies are prescribed by: |
| a) Schedule III and; Section 129 of the Companies Act 2013 |
| b) Accounting St and ards issued by ICAI |
| c) Reserve Bank of India |
| d) No format prescribed |
| Q4.Under Sec,2(71) of the Act ____ means a company which a) is not a private company b) has a minimum paid-up share capital of five lakh rupees. |
| a) Public Company |
| b) Foreign Company |
| c) Private Company |
| d) Subsidiary Company |
| Q5.Company ABC bought goods worth Rs.1000 from Company XYZ in cash. In this transaction, cash will be classified as which type of account? |
| a) Personal account |
| b) Real account |
| c) Nominal account |
| d) Normal account |
| Q6.What is called the revenue earned by the business from its core activity of selling products or offering services or from other sources? |
| a) Liability |
| b) Expense |
| c) Income |
| d) Asset |
| Q7.ABC and Co's Cash Book shows an overdraft balance of Rs.6,34,000 on 30th June 2010, while the Pass Book Balance on that date is Rs.6,33,200. An Examination of the Cash Book and Bank statement(Pass Book), the following discrepancies are noticed. 1) Rs.16,000 Interest on Overdraft for the last 6 months appearing in the Bank Statements is not entered in the Cash Book. 2) Rs.3,000 Bank Charges are not entered in the Cash Book. 3) Two cheques for Rs.1,00,000 and Rs.16,800 issued by the firm have not been presented to the bank. 4) Two cheques for Rs.2,00,000 and Rs.17,000 deposited on 29.6.10 have not been credited in the Pass Book. 5) Rs.1,20,000 interest on investments has been collected and credited by the bank on 30.6.10 but is not entered in the Cashbook. Prepare Bank Reconciliation Statement on the basis of the above particulars and find balance as per Pass Book. |
| a) 2,33,685 |
| b) 4,25,986 |
| c) 6,33,200 |
| d) 8,35,696 |
| Q8.When the primary insurer passes risk on to a reinsurer, and the reinsurer accepts the business, the primary insurer is called the Ceding company and the company that takes on the risk is called the ____. |
| a) Ceding company |
| b) Agent |
| c) Policyholder |
| d) Reinsurer |
| Q9. Firms, Companies, Cooperative societies are examples of which personal accounts? |
| a) Representative personal accounts |
| b) Artificial personal accounts |
| c) Natural personal accounts |
| d) None of these |
| Q10.The debit balance as per the Cash Book of Shrinath Enterprises as of 31.3.2012 is Rs.1,500. i) Cheques deposited but not cleared amount to Rs.100 and cheques issued but not presented amount to Rs.150. ii) The bank allowed interest amounting to Rs.50 and collected a dividend of Rs.50 on behalf of Shrinath Enterprises. Balance as per pass book should be: |
| a) Rs.1,600 |
| b) Rs.1,450 |
| c) Rs.1,850 |
| d) Rs.1,650 |